Report to Housing Authority
Tuesday, December 05, 2023
Consent
SUBJECT:
Title
APPROVAL OF AMENDMENTS TO LOAN AGREEMENT, PROMISSORY NOTE, DEED OF TRUST AND ASSIGNMENT OF RENTS AND RIDER, AND REGULATORY AGREEMENT (COLLECTIVELY, THE "LOAN MODIFICATION AGREEMENTS") RELATED TO AVALON COURTYARD (HOUSING AUTHORITY)
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I. SUMMARY
Housing Authority seeks approval, and requests authority to take recommended actions related to amending the current loan documents pursuant to a Loan Modification Agreement which include the current promissory note, deed of trust with assignment of rents and regulatory agreement ("Existing Loan Documents") related to the property currently owned by the Avalon Courtyard, LP, a California limited partnership ("Developer"), with the purpose of (i) undertaking a substantial rehabilitation of the Avalon Courtyard property located at 22121 S. Avalon Boulevard (APN(s) 7335-013-011, 7335-013-018 and 7335-013-019) ("Affordable Project"), (ii) deepening affordability by redesignating ten (10) units to 30% of AMI, and (iii) extending affordability covenants by 25 to 55 additional years (depending on the covenants).
II. RECOMMENDATION
Recommendation
That the Housing Authority Board:
A. APPROVE the Loan Modification Agreement with revisions to the Existing Loan Documents through a restated and amended promissory note, restated and amended deed of trust, and a restated and amended regulatory agreement (and any necessary related documents), which are collectively the "Loan Modification Documents" to preserve and support the rehabilitation of the existing Affordable Project, and
B. AUTHORIZE the Chair or her designee to negotiate and execute all documents related to the loan modification for the Affordable Project in accordance with the Loan Modification Documents or as set forth herein, in a form acceptable to the Authority Counsel.
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III. ALTERNATIVES
TAKE another action the Board deems appropriate.
IV. BACKGROUND
In February 201...
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